The Tennessee Legislature is in full swing following the bill filing deadline earlier this month. TSCPA’s lobbying team is monitoring several bills that could have potential impacts on our members or the business community at large. We have highlighted a few bills below that we are currently tracking. The entire list of bills being monitored may be found here.
If you have questions or input on any of these bills or other legislation related to the accounting profession, please email them to tscpa@tscpa.com.
HIGHLIGHTED BILLSSB 2103 / HB 1893 – Value of tangible property as minimum tax base. This bill filed by Governor Lee’s administration would remove the provision requiring that the measure of the franchise tax must not be less than the actual value of the real or tangible property owned or used by a taxpayer in this state. The bill authorizes the commissioner of the Tennessee Department of Revenue to issue refunds under certain conditions to taxpayers who properly file a claim for refund for taxes paid under that provision. Credits used will be reinstated but not included in the refund. The refund would be limited to the difference in tax between what was paid using the tangible or real property base and what would have been paid using the apportioned net worth base. Although this legislation could be amended, TSCPA members should begin to evaluate the potential for refunds now. The statute of limitations for refunds ends on Dec. 31 three years from the year in which the tax was paid. Returns filed during 2021 and forward are still eligible for refunds. TSCPA Position/Action: TSCPA is monitoring this legislation and will continue to update members with developments. TSCPA will engage with the Department of Revenue as appropriate to provide input on the implementation of the refund process. Senate Status: Referred to Finance, Ways & Means Revenue Subcommittee SB 1915 / HB 1859 – Occupational licensing for individuals with a criminal record. This bill would prohibit certain licensing authorities from automatically barring an individual from licensure because of the individual's criminal record. It requires the licensing authority to provide individualized consideration of an individual's criminal record and circumstances and specifies which convictions a licensing authority may consider in deciding for licensure. It would also make other changes related to licensure determinations and criminal records including not using a vague term in its consideration and its notice or decision, including good moral character, moral turpitude, or character and fitness. TSCPA Position/Action: TSCPA met with the bill sponsor and has provided language that would exempt accountancy from this legislation. Senate Status: Referred to Commerce & Labor SB 2429 / HB 1903 – Requirements for licensing of contractors. This bill would change the requirement for a contractor who is seeking renewal of a license with a monetary limit exceeding $1.5 million to obtain a reviewed or audited financial statement prepared by a licensed public accountant or a certified public accountant to a compilation prepared by a licensed public accountant or a certified public accountant. TSCPA Position/Action: TSCPA is monitoring progression of the bill to determine if bill language should be amended to clarify the requirement. Senate Status: Referred to Senate Commerce and Labor Committee SB 2694 / HB 2134 – Deductions from net earnings for state excise tax. This bill would allow for any expense, including wages and compensation, allowed for employee retention credit against the federal payroll tax and the Coronavirus Aid, Relief, and Economic Security Act to be deducted from net earnings for the state excise tax. As introduced, this bill will retroactively apply to tax returns filed on or after Jan. 1, 2020, which will specifically extend the statute of limitations for this adjustment. Without this extension, returns filed during 2020 were barred by statute of limitations as of Dec. 31, 2023. TSCPA Position/Action: TSCPA supports this legislation and will continue to monitor the progress of this bill. Senate Status: Referred to Senate Finance, Ways, and Means Committee |
